Ethereum to Runes

This process reverses the earlier steps to convert ERC-20 wrapped tokens back into Runes tokens on the Bitcoin blockchain. The main steps include:

Token Burning and Unlocking:

• Burning of Wrapped Tokens: The ERC-20 tokens representing the Runes on Ethereum are sent to a smart contract where they are permanently burned or destroyed, ensuring that they are removed from circulation on the Ethereum side.

• Unlocking Original Tokens: Simultaneously, the equivalent amount of Runes tokens that were previously locked on the Bitcoin blockchain are released back into circulation.

Verification and Release:

• Cross-Chain Verification: Similar to the Runes to Ethereum process, a verification mechanism ensures that the ERC-20 tokens are burned before the original Runes tokens are unlocked.

• Release of Runes Tokens: Once the burning of the wrapped tokens is confirmed, the original Runes tokens are released from the lockup, becoming available for use on the Bitcoin blockchain again.

User Interaction:

• Interface for Transactions: Users utilize a dedicated interface to initiate the transfer of ERC-20 tokens back to Runes, providing necessary commands and transaction confirmations.

Key Technologies Used:

• Smart Contracts: Utilized on both blockchains to manage the locking, minting, burning, and unlocking of tokens.

• Oracles or Blockchain Relays: These provide the necessary cross-chain data verification to ensure that tokens are securely managed between blockchains.

This bridge mechanism is crucial for enabling interoperability between Bitcoin and Ethereum within the EtheRunes project, allowing users to leverage the benefits of both blockchains while maintaining security and liquidity.